Chapter 7 The Bank Reconciliation Statement

Question 1
Bank balances of Nana Chong’s business are as follows:
Balance as per bank statement, 31 July 2012 $12,345 Cr
Balance as per cash book (bank column), 31 July 2012 $38,086 Dr

The following events were not yet recorded in the cash book:
(i) A trade debtor’s cheque for $5,000 was returned because of insufficient funds.
(ii) Monthly bank charges amounted to $120.
(iii) During the month, the following sums were paid by standing orders:
Insurance premium $1,220
Rent $2,600
(iv) A customer deposited a cheque for $3,900 directly into Nana Chong’s business bank account
on 20 July 2010.

Additional information:
(v) A cheque for $2,500 deposited into the bank account on 31 July 2012 did not appear in the
bank statement.
(vi) Post-dated cheques totalling $23,000 were held in the cash till on 31 July 2012, but had
already been recorded in the cash book as banked.
(vii) The following cheques issued by the business were not presented to the bank for payment:
Cheque no. Amount
445216 $991
445217 $1,371
445218 $2,635
(viii) A cheque payment of $4,321 was entered into the cash book as $4,123.

Required:
Prepare a bank reconciliation statement for the business as at 31 July 2012 without adjusting the
cash book. Start with the balance as per bank statement. (7 marks)

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Answer:
Nana Chong
Bank Reconciliation Statement as at 31 July 2012
$ $
Balance as per bank statement 12,345 0.5
Add Dishonoured cheque (i) 5,000 0.5
Bank charges (ii) 120 0.5
Standing orders — Insurance premium (iii) 1,220 0.5
Rent (iii) 2,600 0.5
Uncredited cheque (v) 2,500 0.5
Post-dated cheques (vi) 23,000 0.5
Bookkeeping error ($4,321 – $4,123) (viii) 198 34,638 1
46,983
Less Direct credit (iv) 3,900 0.5
Unpresented cheques ($991 + $1,371 + $2,635) (vii) 4,997 8,897 1.5
Balance as per cash book 38,086 0.5

Question 2
The bank account for Flora Lee’s business showed a credit balance of $33,220 as at 30 September
2011, which did not agree with the debit balance of $19,997 shown in the bank statement as at the
same date.

The following discrepancies were found upon investigation:

(i) Cheques for $350, $600 and $2,100 that were issued by the business during the month had not
been presented for payment.
(ii) On 30 September 2011, the bank paid the business office rent of $13,300 under a standing
order. This item had not been recorded in the cash book.
(iii) On 29 September 2011, the owner transferred $11,200 from her personal bank account to the
business bank account. This item had not been recorded in the cash book.
(iv) A trade debtor paid $340 directly into the business bank account. This item was shown in the
bank statement but had not been recorded in the cash book.
(v) A sum of $900 was paid into the bank account on 30 September 2011 but had not yet been
credited by the bank.
(vi) A cheque issued to Albert Au for $3,880 was correctly recorded in the bank statement but had
been recorded in the cash book as $3,180.
(vii) A cheque receipt of $7,122 was wrongly recorded on the credit side of the cash book as
$7,211.
(viii) Owing to a casting error, the debit side total of the cash book was overstated by $800.

Required:
(a) Update the cash book. (5 marks)
(b) Draw up a statement, under the correct heading, to account for the difference between the
updated cash book and the balance shown in the bank statement. (3 marks)

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Answer:
(a)
Cash Book
2011 $ 2011 $
Sept 30 Capital ¾ Credit transfer (iii) 11,200 Sept 30 Balance b/d 33,220 0.5 0.5
" 30 Trade receivables ¾ " 30 Rent ¾ Standing Order (ii) 13,300 0.5
Credit transfer (iv) 340 " 30 Albert Au ¾ Incorrect 0.5
" 30 Cheque receipt wrongly amount entered (vi) 700 1
recorded on credit side with ($3,880 - $3,180)
a wrong amount (vii) " 30 Debit side total of cash
($7,122 + $7,211) 14,333 book overstated (viii) 800 1 0.5
" 30 Balance c/d 22,147 0.5
48,020 48,020

(b)
Flora Lee
Bank Reconciliation Statement as at 30 September 2011
$
Adjusted overdraft balance as per cash book (22,147) 0.5
Add Unpresented cheques ($350 + $600 + $2,100) (i) 3,050 1.5
(19,097)
Less Uncredited deposit (v) 900 0.5
Overdraft balance as per bank statement (19,997) 0.5

Question 3
Jack Wong received a bank statement for the month of October 2012, which showed a debit balance
of $29,686 as at 31 October 2012. On examining the cash book and the bank statement, the
following additional information was found:
(i) A post-dated cheque for $6,000 received from a customer on 31 October 2012 had been
entered in the cash book.
(ii) A cheque for $440 received from a customer had been debited twice in the cash book.
(iii) Three cheques drawn by the business during October 2012 had not yet been presented for
payment. The amounts were as follows: $220, $460 and $1,380
(iv) A cheque payment of $2,677 made to a trade creditor had been entered in the cash book as
$2,766.
(v) Share dividends of $800 were credited directlyto the bank account but had not been entered in
the cash book.
(vi) During October 2012, the bank paid the following amounts on behalf of the business under
standing orders:
Subscription to a trade association $500
Office rent $4,000
(vii) Owing to a casting error, the credit side total of the cash book had been overstated by $500.
(viii) A cheque of $3,000 received and banked at 30 October 2012 was not credited by the bank
until 2 November 2012.

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Required:
Prepare a bank reconciliation statement as at 31 October 2012, starting with the unadjusted cash
book balance. (7 marks)

Answer:
Jack Wong
Bank Reconciliation Statement as at 31 October 2012
$ $
Unadjusted overdraft balance as per cash book (19,195) 0.5
Add Unpresented cheques ($220 + $460 + $1,380) (iii) 2,060 1.5
Trade payables — Incorrect amount entered ($2,766 – $2,677) (iv) 89 1
Dividends — Credit transfer (v) 800 0.5
Overstatement of credit side total of cash book (vii) 500 3,449 0.5
(15,746)
Less Post-dated cheque (i) 6,000 0.5
Cheque receipt debited twice in cash book (ii) 440 0.5
Standing orders — Subscription to a trade association (vi) 500 0.5
Office rent (vi) 4,000 0.5
Uncredited cheque (viii) 3,000 13,940 0.5
Overdraft balance as per bank statement (29,686) 0.5

Question 4
The bank account and the bank statement of a business for the month of July 2011 are given below:
Bank
2011 $ 2011 $
Jul 2 M Ma 7,050 Jul 1 Balance b/d 900
" 5 Cash sales 310 " 8 Purchases 2,595
" 15 I Ip 375 " 12 H Hui 205
" 19 Cash sales 1,120 " 19 Furniture and fittings 110
" 30 C Chan 2,910 " 21 P Poon 7,955
" 31 Balance c/d 5,009 " 24 K Kwan 1,000
" 27 Petty cash 789
" 29 Drawings 2,570
" 30 Rent 650
16,774 16,774

Bank Statement
Dr Cr Balance
2011 $ $ $
Jul 1 Opening balance 900 Dr
" 3 Cheque 7,050 6,150 Cr
" 4 Returned cheque — M Ma 7,050 900 Dr
" 5 Deposit 310 590 Dr
" 9 XYZ Co 2,595 3,185 Dr
" 14 Cheque 205 3,390 Dr
" 15 Cheque 375 3,015 Dr
" 15 Standing order — Kowloon Ltd 1,500 4,515 Dr
" 18 Direct debit — Electricity 700 5,215 Dr
" 19 Better Furniture Co 110 5,325 Dr
" 21 Deposit 1,120 4,205 Dr
" 23 Cheque 7,955 12,160 Dr
" 23 Direct credit — Dividends 3,220 8,940 Dr
" 24 Cheque 1,000 9,940 Dr
" 28 ATM withdrawal 789 10,729 Dr
" 31 ABC Properties Ltd 650 11,379 Dr
" 31 Overdraft interest 18 11,397 Dr
" 31 Closing balance 11,397 Dr

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Required:
(a) Update the cash book. (3.5 marks)
(b) Draw up a bank reconciliation statement as at 31 July 2011, starting with the bank statement
balance and ending with the updated cash book balance. (2.5 marks)

Answer:
(a)
Bank
2011 $ 2011 $
Jul 31 Dividends ¾ Direct credit 3,220 Jul 31 Balance b/d 5,009 0.5 0.5
" 31 Balance c/d 11,057 " 31 M Ma — Dishonoured cheque 7,050 0.5 0.5
" 31 Kowloon Ltd — Standing order 1,500 0.5
" 31 Electricity — Direct debit 700 0.5
" 31 Overdraft interest 18 0.5
14,277 14,277

(b)
Bank Reconciliation Statement as at 31 July 2011
$
Overdraft balance as per bank statement (11,397) 0.5
Add Uncredited cheque 2,910 0.5
(8,487)
Less Unpresented cheque 2,570 0.5
Adjusted overdraft balance as per cash book (11,057) 1

Question 5
Malcolm Lee received a bank statement for his business on 2 December 2011. It showed a credit
balance of $36,326 as at 30 November 2011, which did not agree with the cash book balance.

Upon investigation, he found that:

(i) An autopay item of $360 for a telephone bill had not been recorded in the cash book.
(ii) A cheque for $4,100 received and recorded in the cash book had not been credited by the
bank.
(iii) A cheque for $3,300 received from Vicky Leung, a customer, had been entered in the cash
book but the cheque was subsequently dishonoured by the bank. The returned cheque had not
been recorded in the cash book.
(iv) Malcolm Lee found that a standing order of $1,230 for the payment of subscriptions to a trade
journal had been recorded in the bank statement but not in the cash book.
(v) Bank charges of $1,400 were wrongly listed as a credit item in the bank statement. This item
had been correctly recorded in the cash book.
(vi) A cheque from a trade debtor for $12,200 deposited in the bank in November 2010 had been
entered in the cash book as $21,200.
(vii) The bank failed to follow the cancellation notice of a standing order for rent payment, which
amounted to $38,000.

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(viii) Malcolm Lee found that the following cheques issued during November 2011 had not been
presented for payment:
Cheque no. Amount
212234 $5,220
212235 $2,380
212236 $1,040
212237 $876

Required:
(a) Show the necessary adjustments in the cash book. (3.5 marks)
(b) Prepare a bank reconciliation statement as at 30 November 2011, beginning with the updated
cash book balance. (4.5 marks)
(c) State three possible reasons as to why the cheque from Vicky Leung was dishonoured by the
bank. (3 marks)

Answer:
(a)
Bank
2011 $ 2011 $
Nov 30 Balance b/d (balancing figure) 80,000 Nov 30 Telephone — Direct debit (i) 360 0.5 0.5
" 30 Vicky Leung — Dishonoured
cheque (iii) 3,300 0.5
" 30 Subscriptions —
Standing order (iv) 1,230 0.5
" 30 Trade receivables — Incorrect
amount entered (vi)
($21,200 – $12,200) 9,000 1
" 30 Balance c/d (from (b)) 66,110 0.5
80,000 80,000

(b)
Malcolm Lee
Bank Reconciliation Statement as at 30 November 2010
$ $
Adjusted balance as per cash book (balancing figure) 66,110 0.5
Add Bank charges wrongly credited ($1,400 ´ 2) (v) 2,800 1
Unpresented cheques ($5,220 + $2,380 + $1,040 + $876) (viii) 9,516 12,316 1.5
78,426
Less Uncredited cheque (ii) 4,100 0.5
Bank error — Standing order cancellation not followed (vii) 38,000 42,100 0.5
Balance as per bank statement 36,326 0.5

(c) Possible reasons include:

(i) The drawer does not have enough money in the current account for payment.
(ii) There is no signature on the cheque, or the signature does not match that on
record at the bank.
(iii) The amount in words differs from the amount in figures.

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 (iv) The cheque is not dated.
(v) The cheque is a stale cheque.
(vi) The cheque is a post-dated cheque, that is, the date of the cheque has not yet
been reached.
(vii) The drawer’s account has been closed.
(viii) Alterations to the cheque have not been countersigned by the drawer.
(Any three of the above, 1 mark each)

Question 6
The following details concern the cash book (bank column) of Jessica Kong’s business for October
2010:
2010
Oct 1 Balance b/d: $5,660 (overdraft)
" 6 Jessica Kong settled the account of $1,900 with Dinnie Chung, a supplier, by cheque. A
cash discount of 5% was received.
" 8 Paid wages of $2,300 by cheque.
" 15 Paid $2,520 by cheque to settle the account of Minnie Man, a supplier.
" 22 Banked cash sale proceeds of $46,173.
" 29 Withdrew $12,000 cash from the bank for business use.

Required:
(a) Write up the cash book for the month of October 2010. (4 marks)

The bank statement showed a credit balance of $19,538 as at 31 October 2010. Also, the following
information was found:
(i) A standing order made on 15 October 2010 to pay insurance of $3,500 had not been entered in
the cash book.
(ii) Norman Ko, a trade debtor, paid $5,000 by credit transfer. This had not been recorded in the
cash book.
(iii) An autopay of $2,000 for rent appeared in the bank statement but had not been recorded in the
cash book.
(iv) A cheque payment of $1,440 to Raymond Tam, a trade creditor, had been entered in the cash
book as $4,140.
(v) The bank had not credited a cheque for $4,466 received from a trade creditor. This had been
debited in the cash book and deposited into the bank on 30 October 2010.
(vi) Bank charges of $99 had not been recorded in the cash book.
(vii) The following cheques had not been presented for payment:
Cheque no. Payee Amount
113162 Susan Au $1,206

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 113163 Besa Cheung $2,110
113164 Cathy To $499
(viii) A cheque for $3,800 received from Lisa Mok was dishonoured and returned by the bank. This
had not been recorded in the books.

Required:
(b) Update the cash book of Jessica Kong, showing the adjusted balance as at 31 October 2010.
(4.5 marks)
(c) Prepare a bank reconciliation statement as at that date, commencing with the adjusted cash
book balance. (3 marks)

Answer:
(a)
Cash Book
2010 $ 2010 $
Oct 22 Cash sales 46,173 Oct 1 Balance b/d 5,660 0.5 0.5
" 6 Dinnie Chung ($1,900 ´ 95%) 1,805 1
" 8 Wages 2,300 0.5
" 15 Minnie Man 2,520 0.5
" 29 Cash 12,000 0.5
" 31 Balance c/d 21,888 0.5
46,173 46,173

(b)
Cash Book
2010 $ 2010 $
Oct 31 Balance b/d 21,888 Oct 31 Insurance — Standing order (i) 3,500 0.5 0.5
" 31 Norman Ko — " 31 Rent — Direct debit (iii) 2,000 0.5
Credit transfer (ii) 5,000 " 31 Bank charges (vi) 99 0.5 0.5
" 31 Raymond Tam — Incorrect " 31 Lisa Mok — Dishonoured
amount entered (iv) cheque (viii) 3,800 0.5
($4,140 – $1,440) 2,700 " 31 Balance c/d 20,189 1 0.5
29,588 29,588

(c)
Jessica Kong
Bank Reconciliation Statement as at 31 October 2010
$
Adjusted balance as per cash book 20,189 0.5
Add Unpresented cheques ($1,206 + $2,110 + $499) (vii) 3,815 1.5
24,004
Less Uncredited cheque (v) 4,466 0.5
Balance as per bank statement 19,538 0.5

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Question 7
The following cash book summary was extracted from the books of Peter Pang for the month of
January 2012:
Cash Book (Bank Column)
2012 $ 2012 $
Jan 1 Balance b/d 2,355 Jan Payments 42,300
" Receipts 32,660
" 31 Balance c/d 7,285
42,300 42,300

The following information was found after investigation:

(i) The receipt side of the above cash book was overstated by $3,800 due to casting errors.
(ii) Three cheques drawn by the business in January 2012 were not yet presented for payment.
The amounts were: $2,320, $960 and $670.
(iii) On 10 January 2012, Peter deposited into the business bank account a cheque for $3,353
received from a trade debtor. Appropriate entries had been made in both the cash book and the
bank statement. On 13 January 2012, however, the cheque was returned unpaid by the payer’s
bank. The entry in respect of the returned cheque was shown in the bank statement, but an
entry was not yet made in the cash book.
(iv) Bank interest revenue of $378 received in January 2012 was not recorded in the cash book.
(v) At the end of the month, a trade debtor, M Wong, paid $1,900 directly into the business bank
account but this amount did not appear in the cash book.
(vi) Dividend income of $3,456 was credited directly to the bank account but the amount has been
wrongly credited in the cash book as bank charges.
(vii) The following items were shown in the bank statement, but had not yet been entered in the
cash book:
(a) Bank loan interest of $2,000 charged by the bank
(b) An autopay of $2,210 for rent in January 2010
(viii) Rental income amounting to $800 was deposited directly into the bank but was not yet been
entered in the cash book.
(ix) The following cheque receipts were recorded in the cash book for the month of January 2012:
Date deposited Date credited by the bank Amount
Jan 29 Feb 1 $1,200
" 30 Jan 31 $2,400
" 31 Feb 2 $2,350

Required:
(a) Update the cash book for Peter Pang and show the adjusted bank balance as at 31 January
2012. (5.5 marks)
(b) Prepare a bank reconciliation statement as at 31 January 2012, starting with the bank
statement balance. (3.5 marks)
(c) State the amount of the bank balance that should be shown in the statement of financial

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 position of Peter Pang’s business as at 31 January 2012. (1 mark)

Answer:
(a)
Cash Book (Bank Column)
2012 $ 2012 $
Jan 31 Bank interest revenue (iv) 378 Jan 31 Balance b/d 7,285 0.5 0.5
" 31 M Wong — Direct credit (v) 1,900 " 31 Overstatement of receipt side 0.5
" 31 Dividend income (vi) 3,456 of cash book (i) 3,800 0.5 0.5
" 31 Bank charges wrongly " 31 Trade receivables —
credited (vi) 3,456 Dishonoured cheque (iii) 3,353 0.5 0.5
" 31 Rental income — " 31 Bank loan interest (vii) 2,000 0.5
Credit transfer (viii) 800 " 31 Rent — Standing order (vii) 2,210 0.5 0.5
" 31 Balance c/d 8,658 0.5
18,648 18,648

(b)
Peter Pang
Bank Reconciliation Statement as at 31 January 2012
$
Overdraft balance as per bank statement (balancing figure) (8,258) 0.5
Add Uncredited cheques ($1,200 + $2,350) (ix) 3,550 1
(4,708)
Less Unpresented cheques ($2,320 + $960 + $670) (ii) 3,950 1.5
Adjusted overdraft balance as per cash book (8,658) 0.5

(c) The bank balance shown in the statement of financial position as at 31 January 2012
should be $8,658 (overdraft). 1

Question 8
Danny Ma, a wholesaler, received a bank statement for the month of March 2010. The bank
statement balance did not agree with the credit bank balance of $34,766 shown in the cash book.

The difference was accounted for by the following items:

(i) An amount of $2,180 was paid directly into the bank by Elle Or, a trade debtor, but this did
not appear in Danny’s books.
(ii) A bank interest charge of $771 appeared in the bank statement but was not recorded in the
cash book.
(iii) During the month, the bank returned a cheque for $690, drawn by Besa Chan, a trade debtor.
This cheque was marked ‘insufficient funds’ by the bank. Danny did not deal with the
dishonoured cheque in the books.
(iv) A standing order of $6,600 for the payment of office rent was not recorded in the cash book.
(v) The bank statement showed that a rates refund of $2,100 was credited directly to the bank
account, but this was not reflected in the books of the business.
(vi) A cheque for $4,000 drawn on 1 March 2009 to settle a trade creditor’s account had not been
presented to the bank. The cheque was dated 1 March 2009.

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(vii) A debt of $3,320 that was written off as bad in January 2010 was recovered and a cheque
dated 2 May 2010 was received. This cheque had been recorded in the cash book (bank
column) but was not yet banked.
(viii) A cheque for $2,100 issued to pay for office equipment was mistakenly recorded as $1,200 in
the cash book.
(ix) The debit side of the cash book (bank column) was understated by $700 due to a casting error.
(x) A cheque for $2,793, after deducting a cash discount of 5%, was received from a trade debtor
on 13 March 2010. The bookkeeper recorded the gross amount in the cash book.

Required:
(a) Update the cash book. (7 marks)
(b) Show the journal entries for items (i) to (vii). (No narrations are required.) (7 marks)

Additional information:
(xi) On 30 March 2010, a cheque for $1,260 received from Grace Lam, a trade debtor, was banked.
This had not been credited in the bank statement.
(xii) Cheques for $330, $1,940 and $100, respectively, were issued and entered in the cash book.
None of these cheques had been presented for payment.
(xiii) An amount of $8,300 was credited in the bank statement by mistake.
(xiv) Danny Ma instructed the bank to transfer $2,910 from his personal savings account to the
business bank account. The bank made the transfer in reverse.

Required:
(c) Draw up the bank reconciliation statement by starting with the bank statement balance, and
reconcile this balance with the adjusted balance of the bank column in the cash book.
(4 marks)

Answer:
(a)
Cash Book
2010 $ 2010 $
Mar 31 Elle Or — Credit transfer (i) 2,180 Mar 31 Balance b/d 34,766 0.5 0.5
" 31 Rates refund — " 31 Bank charges (ii) 771 0.5
Credit transfer (v) 2,100 " 31 Besa Chan — Dishonoured 0.5
" 31 Trade payables — Stale cheque cheque (iii) 690 0.5
(vi) 4,000 " 31 Rent — Standing order (iv) 6,600 0.5 0.5
" 31 Understatement of debit side " 31 Trade receivables —
of cash book (ix) 700 Post-dated cheque (vii) 3,320 0.5 0.5
" 31 Balance c/d 38,214 " 31 Office equipment — Incorrect 0.5
amount entered (viii)
($2,100 – $1,200) 900 1
" 31 Bookkeeping error (x)
[($2,793 ÷ 95%) – $2,793] 147 1
47,194 47,194

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(b)
The Journal
Details Dr Cr
$ $
(i) Bank 2,180 0.5
Elle Or 2,180 0.5
(ii) Bank charges 771 0.5
Bank 771 0.5
(iii) Besa Chan 690 0.5
Bank 690 0.5
(iv) Office rent 6,600 0.5
Bank 6,600 0.5
(v) Bank 2,100 0.5
Rates 2,100 0.5
(vi) Bank 4,000 0.5
Trade payables 4,000 0.5
(vii) Trade receivables 3,320 0.5
Bank 3,320 0.5

(c)
Danny Ma
Bank Reconciliation Statement as at 31 March 2010
$ $
Overdraft balance as per bank statement (balancing figure) (34,624) 0.5
Add Uncredited cheque (xi) 1,260 0.5
Bank error ($2,910 × 2) (xiv) 5,820 7,080 1
(27,544)
Less Unpresented cheques ($330 + $1,940 + $100) (xii) 2,370 1
Bank error (xiii) 8,300 10,670 0.5
Adjusted overdraft balance as per cash book (38,214) 0.5

Question 9
The bank column of Angie Lam’s cash book showed a debit balance of $23,080 as at 31 December
2010. On the same date, the bank statement showed a credit balance of $13,648.

The following information was obtained:

(i) A standing order of $2,390 for electricity payment appeared in the bank statement but no
entry was made in the cash book.
(ii) A cheque of $3,210 issued to M Lai was dishonoured by the bank as the amount in words
differed from the amount in figures.
(iii) A cheque received from a trade debtor of $6,020 was returned by the bank. No entry was
made in the cash book.
(iv) A cheque for $2,960 had been issued to settle credit purchases and recorded in the cash book,
but was yet presented for payment.
(v) A cheque was issued to settle a trade creditor’s account of $34,500. A discount of 2% was
received but the gross amount was entered in the cash book.
(vi) A cheque for $6,402 representing disposal proceeds of a van was entered in the cash book but
was not yet banked.

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(vii) Charges of $100 were made by the bank but were not recorded in the cash book.
(viii) A cheque for $1,380 was deposited into the bank account at the end of December 2010, but
was not shown in the bank statement.

Required:
(a) Update the cash book, showing all the necessary adjustments. (3.5 marks)
(b) Prepare a bank reconciliation statement as at 31 December 2010. (2.5 marks)

Answer:
(a)
Bank
2010 $ 2010 $
Dec 31 Balance b/d 23,080 Dec 31 Electricity — Standing order (i) 2,390 0.5 0.5
" 31 M Lai — Dishonoured " 31 Trade receivables —
cheque (ii) 3,210 Dishonoured cheque (iii) 6,020 0.5 0.5
" 31 Discounts received (v) " 31 Bank charges (vii) 100 0.5
($34,500 × 2%) 690 " 31 Balance c/d 18,470 0.5 0.5
26,980 26,980

(b)
Angie Lam
Bank Reconciliation Statement as at 31 December 2010
$ $
Adjusted balance as per cash book 18,470 0.5
Add Unpresented cheque (iv) 2,960 0.5
21,430
Less Proceeds from disposal of a van (vi) 6,402 0.5
Uncredited cheque (viii) 1,380 7,782 0.5
Balance as per bank statement 13,648 0.5

Question 10
Terence Hung is a sole trader. He received his bank statement dated 30 April 2012, but the balance
shown in the bank statement did not agree with the credit balance of $2,670 shown in the bank
column of the cash book.

The following items were then discovered:

(i) A direct debit of $500 for electricity charges for the month of April 2012 had not been entered
in the cash book.
(ii) A credit transfer of $5,500 from N Lee on 20 April 2012 had not been recorded in the cash
book.
(iii) Terence Hung took out $590 in cash from the bank account for his private use. This had been
not recorded in the cash book but appeared in the bank statement.
(iv) A cheque for $1,500 was received from M Ho on 24 April 2012. Terence Hung duly recorded
the amount in the cash book and deposited the cheque. On 29 April 2012, Terence Hung’s
bank returned the cheque marked ‘refer to drawer’. The returned cheque had not been

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 recorded in the cash book.
(v) Cheques issued by the business totalling $3,800 had not been presented for payment.
(vi) A cheque donation of $200 to a charity appeared in the bank statement on 22 April 2012, but
no entry had been made in the cash book.
(vii) A cheque for $2,050 was received from R Chan on 30 April 2012. This had been recorded in
the cash book but did not appear in the bank statement until 2 May 2012.

Required:
(a) Update the cash book. (3.5 marks)
(b) Prepare a bank reconciliation statement as at 30 April 2012. (2.5 marks)

Answer:
(a)
Bank
2012 $ 2012 $
Apr 30 N Lee — Credit transfer (ii) 5,500 Apr 30 Balance b/d 2,670 0.5 0.5
" 30 Water — Direct debit (i) 500 0.5
" 30 Drawings (iii) 590 0.5
" 30 M Ho — Dishonoured
cheque (iv) 1,500 0.5
" 30 Donation (vi) 200 0.5
" 30 Balance c/d 40 0.5
5,500 5,500

(b)
Terence Hung
Bank Reconciliation Statement as at 30 April 2012
$
Adjusted balance as per cash book 40 0.5
Add Unpresented cheques (v) 3,800 0.5
3,840
Less Uncredited cheque (vii) 2,050 0.5
Balance as per bank statement 1,790 1

Question 11
The following is the bank account and bank statement of Susan So’s business for April 2014:

Bank
2014 $ 2014 $
Apr 1 Balance b/d 24,664 Apr 8 Billy Bau 14,300
" 9 Liz Lo 6,578 " 13 Fiona Fu 16,830
" 22 Wilson Wong 1,409 " 25 Teli Tang 6,683
" 28 Gary Goh 10,205 " 30 Balance c/d 12,913
" 29 Sofia Sung 7,870
50,726 50,726

14
 Bank Statement
Dr Cr Balance
2014 $ $ $
Apr 1 Balance b/d 24,664 24,664 Cr
" 8 Cheque 14,300 10,364 Cr
" 10 Cheque 6,578 16,942 Cr
" 13 Cheque 16,830 112 Cr
" 16 Direct debit — Rent and rates 2,100 1,988 Dr
" 21 Credit transfer — Mandy Mok 5,900 3,912 Cr
" 22 Cheque 1,409 5,321 Cr
" 23 Miclara Chong — Standing order 1,250 4,071 Cr
" 27 Bank charges 530 3,541 Cr
" 30 Cheque 10,205 13,746 Cr

Required:
(a) Update the bank account. (3 marks)
(b) Draw up a bank reconciliation statement as at 30 April 2014, starting with the updated bank
account balance and ending with the bank statement balance. (2 marks)

Answer:
(a)
Bank
2014 $ 2014 $
Apr 30 Balance b/d 12,913 Apr 30 Rent and rates — Direct debit 2,100 0.5 0.5
" 30 Mandy Mok — Credit transfer 5,900 " 30 Miclara Chong — 0.5
Standing order 1,250 0.5
" 30 Bank charges 530 0.5
" 30 Balance c/d 14,933 0.5
18,813 18,813

(b)
Susan So
Bank Reconciliation Statement as at 30 April 2014
$
Adjusted balance as per cash book 14,933 0.5
Add Unpresented cheque 6,683 0.5
21,616
Less Uncredited cheque 7,870 0.5
Balance as per bank statement 13,746 0.5

15
Question 12
The following is the bank account and bank statement of Cindy Ho’s business for July 2014:

Bank
2014 $ 2014 $
Jul 3 Mandy Mok 87,036 Jul 1 Balance b/d 33,333
" 6 Sales 38,275 " 6 Purchases 12,000
" 15 Sales 13,820 " 11 Henry Ho 2,530
" 18 Ivan Or 4,600 " 18 Peter Pan 39,800
" 28 Clara Chong 35,925 " 21 Furniture and fittings 13,500
" 25 Kelvin Ko 12,345
" 28 Rent 9,740
" 29 Drawings 31,720
" 31 Insurance 6,500
" 31 Balance c/d 18,188
179,656 179,656

Bank Statement
Dr Cr Balance
2014 $ $ $
Jul 1 Balance b/d 33,333 Dr
" 4 Cheque 87,036 53,703 Cr
" 5 Cheque dishonoured — Mandy Mok 87,036 33,333 Dr
" 6 Cash deposit 38,275 4,942 Cr
" 10 Cheque 12,000 7,058 Dr
" 15 Cheque 2,530 9,588 Dr
" 16 Cheque 4,600 4,988 Dr
" 18 Standing order — Hong Ltd 18,500 23,488 Dr
" 19 Direct debit — Electricity 8,600 32,088 Dr
" 20 Cash withdrawal 13,500 45,588 Dr
" 21 Cash deposit 13,820 31,768 Dr
" 23 Cheque 12,345 44,113 Dr
" 26 Credit transfer — Rates refund 3,500 40,613 Dr
" 28 Cheque 9,740 50,353 Dr
" 30 Cheque 6,500 56,853 Dr
" 31 Overdraft interest 180 57,033 Dr

Required:
(a) Update the bank account. (3.5 marks)
(b) Draw up a bank reconciliation statement as at 31 July 2014, starting with the bank statement
balance and ending with the updated bank account balance. (2.5 marks)

Answer:
(a)
Bank
2014 $ 2014 $
Jul 31 Balance b/d 18,188 Jul 31 Mandy Mok — Cheque 0.5
" 31 Rates — Credit transfer 3,500 dishonoured 87,036 0.5 0.5
" 31 Balance c/d 92,628 " 31 Hong Ltd — Standing order 18,500 0.5 0.5
" 31 Electricity — Direct debit 8,600 0.5
" 31 Overdraft interest 180 0.5
114,316 114,316

16
(b)
Cindy Ho
Bank Reconciliation Statement as at 31 July 2014
$
Overdraft balance as per bank statement (balancing figure) (57,033) 0.5
Add Uncredited cheque 35,925 0.5
(21,108)
Less Unpresented cheques ($39,800 + $31,720) 71,520 1
Adjusted overdraft balance as per cash book (92,628) 0.5

Question 13
At the close of business on 30 April 2014, Nichole Chan’s bash book showed a debit balance of
$38,560. This did not agree with the bank statement balance as at the same date. The following
items accounted for the difference:

The following records were found in the cash book but had not been entered in the bank statement:
(i) A cheque for $1,200 deposited on 30 April 2014.
(ii) A cheque for $5,678 from a customer was entered in the cash book as $6,587.
(iii) A cheque of $22,110 issued to a customer had not been presented for payment.
(iv) Post-dated cheques totalling $3,000 were still in the cash till on 30 April waiting to be
deposited.

The following entries in the bank statement were omitted from the cash book:
(v) A debtor’s cheque for $1,000 was returned because of insufficient funds.
(vi) Bank charges of $600.
(vii) Ben Chan, a customer, deposited directly into the business bank account a cheque for $21,900
on 23 April 2014.
(viii) During April, the bank made payments for the business under the following standing orders:
$
Insurance premiums 11,500
Rates 2,450

Required:
Prepare a bank reconciliation statement for Nichole Chan’s business as at 30 April 2014, starting
with the unadjusted cash book balance. (6 marks)

17
Answer:
Nichole Chan
Bank Reconciliation Statement as at 30 April 2014
$ $
Balance as per cash book 38,560 0.5
Add Unpresented cheque 22,110 0.5
Credit transfer 21,900 44,010 0.5
82,570
Less Uncredited cheque 1,200 0.5
Cash book error ($6,587 – $5,678) 909 1
Post-dated cheques 3,000 0.5
Cheque dishonoured 1,000 0.5
Bank charges 600 0.5
Standing order — Insurance premium 11,500 0.5
Standing order — Rates 2,450 20,659 0.5
Balance as per bank statement 61,911 0.5

Question 14
At the close of business on 31 March 2014, the cash book of Amy Chan’s business showed a debit
balance at bank of $55,220.

Upon investigation, the following were discovered:

(i) Cheques for $2,300, $3,600 and $4,200, respectively, were issued by the business during the
month but were not yet presented for payment.
(ii) A standing order payment for subscription fee of trade journals of $1,200, made on 20 March
2014, was not recorded in the cash book.
(iii) No entry was made in the cash book for bank charges of $200 shown in the bank statement.
(iv) On 13 March 2014, Amy Chan paid insurance premiums of $4,500 from the business bank
account. One-third of this amount was her private apartment's fire insurance but the payment
was not recorded in the cash book.
(v) The bank did not record a cheque of $11,000 deposited on 30 March 2014.
(vi) A cheque of $12,054 from Bonnie Tang had been returned by the bank and marked ‘refer to
drawer’. However, this was not recorded in the cash book.
(vii) On 25 March 2014, the owner made a deposit of $5,880 directly into business bank account.
This item had not been entered in the cash book.
(viii) A cheque for $67,670 paid to Rita Lo, a creditor, was entered in the cash book as $76,760.

Required:
(a) Update the cash book of Amy Chan’s business showing the adjusted balance on 31 March 2014.
(6 marks)
(b) Prepare a bank reconciliation statement as at 31 March 2014, commencing with the bank
statement balance. (3 marks)

18
Answer:
(a)
Cash Book
2014 $ 2014 $
Mar 31 Balance b/d 55,220 Mar 31 Journal subscriptions — 0.5
" 31 Capital — Direct credit (vii) 5,880 Standing order (ii) 1,200 0.5 0.5
" 31 Rita Lo (viii) " 31 Bank charges (iii) 200 0.5
($76,760 – $67,670) 9,090 " 31 Insurance (iv) ($4,500 × 2/3) 3,000 1 1
" 31 Drawings (iv) ($4,500 × 1/3) 1,500 1
" 31 Bonnie Tang —
Dishonoured cheque (vi) 12,054 0.5
" 31 Balance c/d 52,236 0.5
70,190 70,190

(b)
Amy Chan
Bank Reconciliation Statement as at 31 March 2014
$
Balance as per bank statement (balancing figure) 51,336 1
Add Uncredited cheque (v) 11,000 0.5
62,336
Less Unpresented cheques ($2,300 + $3,600 + $4,200) (i) 10,100 1
Adjusted balance as per cash book 52,236 0.5

Question 15
The bank column of Freda Lam’s cash book showed a credit balance of $18,990 on 30 September
2014, which did not agree with the balance in the bank statement as at the same date. The following
discrepancies were revealed upon investigation:

(i) Cheques for $16,350 was drawn by the business during the month but had not yet been
presented for payment.
(ii) A cheque issued to Albert To for $1,280 was correctly recorded in the bank statement but had
been recorded in Freda’s book as $1,380.
(iii) A cheque receipt of $1,234 was recorded on the credit side of the bank account as $12,340.
(iv) The debit side total of the bank account had been understated by $550.
(v) At the end of the month, the bank paid on behalf of Freda Lam, under a banker’s standing
order, the rent of the business office amounting to $55,300. This had not been entered in the
cash book.
(vi) On 30 September 2014, the owner paid $900 directly into business bank account. This item
had not been entered in the cash book.
(vii) Bank interest received of $5,430 had been entered in the bank statement but not in the cash
book.
(viii) A cheque of $21,100 received from Thomas Luk on 30 September had been deposited but not
yet been credited.

19
Required:
(a) Update the bank column of the cash book. (5 marks)
(b) Draw up a bank reconciliation statement to account for the difference between the updated
cash book balance and the balance shown in the bank statement. (2 marks)

Answer:
(a)
Cash Book (Bank Column)
2014 $ 2014 $
Sept 30 Albert To (ii) ($1,380 – $1,280) 100 Sept 30 Balance b/d 18,990 1 0.5
" 30 Cheque recorded on the credit " 30 Rent — Standing Order (v) 55,300 0.5
side (iii) ($1,234 + $12,340) 13,574 1
" 30 Debit total understated (iv) 550 0.5
" 30 Capital — Direct credit (vi) 900 0.5
" 30 Bank interest 5,430 0.5
" 30 Balance c/d 53,736 0.5
74,290 74,290

(b)
Freda Lam
Bank Reconciliation Statement as at 30 September 2014
$
Adjusted overdraft balance as per bank book (53,736) 0.5
Add Unpresented cheque (i) 16,350 0.5
(37,386)
Less Uncredited cheque (viii) 21,100 0.5
Overdraft balance as per bank statement (58,486) 0.5

Question 16
Jason Yip is a sole trader operating a retail business. At the close of business on 31 October 2014,
the cash book’s bank column showed a debit balance of $68,746. Upon checking the bank
statement against the cash book, Jason found the following:
(i) A post-dated cheque for $8,000 received from a customer on 31 October 2014 was entered in
the cash book.
(ii) During October 2014, Jason's bank paid, under direct debit arrangements, the following
amounts on his behalf:
Office rent $1,351
Electricity $3,165
(iii) A cheque for $5,343 paid to a supplier was debited twice in the cash book and credited twice
to the supplier’s account.
(iv) The following cheques, drawn by the business during October 2014, were not yet presented
for payment: $45,220, $3,490 and $4,760.
(v) A cheque payment of $7,666 to a creditor was entered in the cash book as $6,777.
(vi) Bank interest revenue of $250 was credited directly by the bank but was not entered in the
cash book.

20
(vii) The debit side total of the cash book (bank column) was overstated by $2,100.
(viii) A cheque of $8,610 received and banked on 30 October 2014 was not credited by the bank
until the first day of next month.

Required:
Prepare a bank reconciliation statement as at 31 October 2014, commencing with the unadjusted
cash book balance. (7 marks)

Answer:
Jason Yip
Bank Reconciliation Statement as at 31 October 2014
$ $
Balance as per cash book 68,746 0.5
Add Unpresented cheques ($45,220 + $3,490 + $4,760) (iv) 53,470 1
Bank interest revenue (vi) 250 53,720 0.5
122,466
Less Post-dated cheque (i) 8,000 0.5
Direct debit — Office rent (ii) 1,351 0.5
Direct debit — Electricity (ii) 3,165 0.5
Cheque paid wrongly debited to the cash book twice ($5,343 × 3) (iii) 16,029 1
Cheque amount wrongly recorded ($7,666 – $6,777) (v) 889 1
Cash book total overstated (vii) 2,100 0.5
Uncredited cheque (viii) 8,610 40,144 0.5
Balance as per bank statement 82,322 0.5

Question 17
The cash book of Celine Chan’s business had a credit balance of $8,500 as at 31 December 2014. An
examination of the cash book and bank statement revealed the following:
(i) A standing order payment of $550 for an electricity bill, made on 27 December 2014, had not
been recorded in the cash book.
(ii) The bank had wrongly credited Celine Chan’s account with a receipt of $86 which should
have been credited to the account of another bank account holder, Cherry Chan.
(iii) The receipt side of the cash book was understated by $1,200.
(iv) Celine Chan found that the following cheques issued during December 2014 had not been
presented for payment:
Cheque no. Amount
45670 $2,342
45673 $42,342
46678 $3,244
(v) Celine Chan deposited cheques from debtors totalling $2,700 into the business bank account
on 31 December 2014, but this transaction had not been recorded in the bank statement.
(vi) Bank charges of $150 had not been entered into the cash book.
(vii) A cheque for $6,900 issued to pay for goods purchased was mistakenly recorded as $690 in
the cash book.

21
(viii) A credit transfer of $4,100 from Marion Tong on 20 December 2014 had not been recorded in
the cash book.

Required:
(a) Update the cash book of Celine Chan’s business, showing the adjusted balance as at
31 December 2014. (4 marks)
(b) Prepare a bank reconciliation statement as at 31 December 2014, commencing with the
adjusted cash book balance. (3 marks)

Answer:
(a)
Cash Book
2014 $ 2014 $
Dec 31 Debit total understated (iii) 1,200 Dec 31 Balance b/d 8,500 0.5 0.5
" 31 Marion Tong — " 31 Electricity — Standing order (i) 550 0.5
Credit transfer (viii) 4,100 " 31 Bank charges (vi) 150 0.5 0.5
" 31 Balance c/d 10,110 " 31 Purchases (vii) ($6,900 – $690) 6,210 0.5 1
15,410 15,410

(b)
Celine Chan
Bank Reconciliation Statement as at 31 December 2014
$ $
Adjusted overdraft balance as per cash book (10,110) 0.5
Add Bank error (ii) 86 0.5
Unpresented cheques ($2,342 + $42,342 + $3,244) (iv) 47,928 48,014 1
37,904
Less Uncredited cheque (v) 2,700 0.5
Balance as per bank statement 35,204 0.5

Question 18
Sue Ltd’s cash book showed a debit balance of $42,536 as at 31 March 2014. However, the balance
shown in the bank statement did not agree with the bank column of the cash book. Upon
investigation, the following additional information was found:
(i) A cheque for $9,300 received from Jolly Chan was dishonoured and returned by the bank.
This had not been recorded in the books.
(ii) An autopay of $6,000 for rent and rates appeared in the bank statement but had not been
recorded in the cash book.
(iii) Bank interest revenue of $1,502 was not recorded in the cash book.
(iv) Cheques amounting to $2,500 were issued by Sue Ltd before 31 March 2014 but had not been
presented by that date.
(v) A cheque payment of $5,860 for cleaning fees was debited twice to the cash book.
(vi) A cheque for $6,515 was deposited into the bank account at the end of March 2014, but was
not shown in the bank statement.
(vii) A standing order of $700 for advertising for the month of March 2014 had not been entered in

22
 the cash book.
(viii) The debit side total of the cash book had been understated by $2,900.
(ix) Insurance premium payment of $285 had been recorded in the cash book but omitted in the
bank statement.

Required:
(a) Update the cash book of Sue Ltd, showing the adjusted balance on 31 March 2014.
(4.5 marks)
(b) Prepare a bank reconciliation statement as at 31 March 2014, commencing with the bank
statement balance. (2.5 marks)

Answer:
(a)
Cash Book (Bank Column)
2014 $ 2014 $
Mar 31 Balance b/d 42,536 Mar 31 Jolly Chan — 0.5
" 31 Bank interest revenue (iii) 1,502 Dishonoured cheque (i) 9,300 0.5 0.5
" 31 Debit total understated (viii) 2,900 " 31 Rent and rates — Autopay (ii) 6,000 0.5 0.5
" 31 Cheque payment debited
Twice (v) ($5,860 × 3) 17,580 1
" 31 Advertising —
Standing order (vii) 700 0.5
" 31 Balance c/d 13,358 0.5
46,938 46,938

(b)
Sue Ltd
Bank Reconciliation Statement as at 31 March 2014
$ $
Balance as per bank statement (balancing figure) 9,628 0.5
Add Uncredited cheque (vi) 6,515 0.5
16,143
Less Unpresented cheques (iv) 2,500 0.5
Bank error — Insurance premium payment omitted (ix) 285 2,785 0.5
Adjusted balance as per cash book 13,358 0.5

Question 19
The bank column of John Lam’s cash book showed a credit balance of $66,148 as at 31 October
2014. The following information was disclosed after investigation:
(i) The payment side of the cash book had been overcast by $5,130.
(ii) Cheques of $12,322 drawn by the business during October 2014 had not yet been presented
for payment.
(iii) A cheque of $89,444 was returned unpaid by the debtor’s bank. The entry in respect of the
unpaid cheque was shown in the bank statement. But no entry had been made in the cash
book.
(iv) A payment by cheque of $22,440 to a creditor had been entered in the cash book as $23,440.

23
(v) A debtor paid $5,200 directly into the business’s bank account but this amount did not appear
in the cash book.
(vi) Bank interest revenue of $466 had been credited directly into the bank account but the amount
was wrongly credited in the cash book as bank charges.
(vii) Bank loan interest of $900 charged by the bank was shown in the bank statement, but was not
yet entered in the cash book.
(viii) Dividend income amounting to $8,300 had been credited directly to the bank account but had
not been entered in the cash book.
(ix) Cheques entered in the cash book for the month of October 2014 included the following:
Date deposited Date credited by bank Amount
Oct 30 Oct 31 $5,131
Oct 31 Nov 1 $2,159
Oct 31 Nov 2 $3,155
(x) Nancy Ko, a debtor, settled her account by paying $5,000 to the business by credit transfer.
This had not been entered in the cash book.
(xi) An autopay for rent of $7,000 shown in the bank statement had not been entered in the cash
book.

Required:
(a) Update the cash book for John Lam’s business and show the adjusted balance as at 31 October
2014. (6.5 marks)
(b) Prepare a bank reconciliation statement as at 31 October 2014. (2.5 marks)

Answer:
(a)
Cash Book (Bank Column)
2014 $ 2014 $
Oct 31 Credit side overstated (i) 5,130 Oct 31 Balance b/d 66,148 0.5 0.5
" 31 Creditor (iv) " 31 Debtor —
($23,440 – $22,440) 1,000 Cheque dishonoured (iii) 89,444 1 0.5
" 31 Debtor — Direct credit (v) 5,200 " 31 Bank loan interest (vii) 900 0.5 0.5
" 31 Bank interest revenue recorded " 31 Rent (xi) 7,000 0.5
as bank charges (vi)
($466 × 2) 932 1
" 31 Dividend income —
Direct credit (viii) 8,300 0.5
" 31 Nancy Ko — Credit transfer (x) 5,000 0.5
" 31 Balance c/d 137,930 0.5
163,492 163,492

24
(b)
John Lam
Bank Reconciliation Statement as at 31 October 2014
$
Adjusted overdraft balance as per cash book (137,930) 0.5
Add Unpresented cheques (ii) 12,322 0.5
(125,608)
Less Uncredited cheques ($2,159 + $3,155) (ix) 5,314 1
Overdraft balance as per bank statement (130,922) 0.5

Question 20
The following information concerns the cash book (bank column) of Andy Ma’s business for
October 2014. The balance shown in the bank statement did not agree with the credit balance of
$45,911 as shown in the cash book as at 31 October 2014. The difference was accounted for by the
following:
(i) A debtor had paid Andy Ma $9,000 by credit transfer. This had not been entered in the cash
book.
(ii) The bank charged $600 bank interest from Andy’s business bank account, and appeared in the
bank statement. It had not been entered in the cash book.
(iii) The bank had returned a cheque for $22,680, drawn by a debtor of Andy Ma. This cheque had
been marked ‘refer to drawer’. Andy has not yet recorded the dishonoured cheque in his
books.
(iv) A standing order to pay storage service fee of $2,200 had not been entered in the cash book.
(v) The bank statement showed that a commission amounting to $11,110 had been paid directly
into Andy Ma’s business bank account, but no record of this appeared in his books.
(vi) A cheque for $6,600 drawn on 1 January 2014 to settle a supplier’s account had not been
presented to the bank.
(vii) No entry has been made in the cash book for bank charges of $930 shown in the bank
statement.
(viii) A cheque for $2,100 drawn by Andy Ma to pay for equipment had been mistakenly recorded
as $2,010 in the cash book.
(ix) The debit side of the cash book had been overcast by $1,550.
(x) A cheque for $36,360, after deducting a cash discount of 10%, was received from a debtor
during the month. The bookkeeper recorded the gross amount in the cash book.
(xi) A payment by cheque of $4,040 to a creditor had been entered in the cash book as $4,140.
(xii) The following cheques issued by Andy had not been presented to the bank:
Cheque Number Amount
96188 $1,351
96189 $21,110
96190 $32,157
(xiii) A cheque for $66,700 received and recorded in the cash book had not been credited by the
bank.

25
Required:
(a) Update the cash book for Andy Ma’ business showing the adjusted balance on 31 October
2014, and (8.5 marks)
(b) Prepare a bank reconciliation statement as at 31 October 2014. (2.5 marks)

Answer:
(a)
Cash Book (Bank Column)
2014 $ 2014 $
Oct 31 Debtor — Credit transfer (i) 9,000 Oct 31 Balance b/d 45,911 0.5 0.5
" 31 Commission income — " 31 Bank interest (ii) 600 0.5
Credit transfer (v) 11,110 " 31 Debtor — 0.5
" 31 Creditor — Stale cheque (vi) 6,600 Cheque dishonoured (iii) 22,680 1 0.5
" 31 Cheque payment overstated (xi) " 31 Storage service fee —
($4,140 – $4,040) 100 Standing order (iv) 2,200 1 0.5
" 31 Balance c/d 51,191 " 31 Bank charges (vii) 930 0.5 0.5
" 31 Equipment (viii)
($2,100 – $2,010) 90 1
" 31 Debit side overstated (ix) 1,550 0.5
" 31 Debtor — Cheque receipt
overstated (x)
[($36,360 ÷ 90%) – $36,360] 4,040 1
78,001 78,001

(b)
Andy Ma
Bank Reconciliation Statement as at 31 October 2014
$
Adjusted overdraft balance as per cash book (51,191) 0.5
Add Unpresented cheques ($1,351 + $21,110 + $32,157) (xii) 54,618 1
3,427
Less Uncredited deposit (xiii) 66,700 0.5
Overdraft balance as per bank statement (63,273) 0.5

26